BROS(SH:601339) Haitong Securities International·2025-11-05 12:23Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 6.92 RMB based on a 14X PE for 2026 [4][9]. Core Insights - The company's Q3 revenue slightly increased by 2.33% year-on-year to 2.13 billion RMB, while net profit attributable to shareholders decreased by 11.17% to 160 million RMB. The gross profit margin (GPM) was 10.29%, down 3.75 percentage points year-on-year [10][11]. - The report highlights strong capacity in Vietnam, while Chinese capacity is under pressure due to US tariffs and weak domestic demand, impacting orders and GPM [11][12]. - The long-term overseas capacity advantage of the company is expected to become more pronounced, particularly as the US tax rate increases local procurement demand in overseas garment and footwear factories [12]. Financial Summary - Total revenue projections for the company are as follows: 6,914 million RMB in 2023, 7,941 million RMB in 2024, 7,582 million RMB in 2025, 7,932 million RMB in 2026, and 8,321 million RMB in 2027, with a projected growth rate of -1.1% in 2023 and 14.9% in 2024 [3]. - Net profit attributable to shareholders is forecasted to be 504 million RMB in 2023, 410 million RMB in 2024, 650 million RMB in 2025, 738 million RMB in 2026, and 835 million RMB in 2027, reflecting a significant decrease of 67.7% in 2023 [3]. - The earnings per share (EPS) is expected to be 0.34 RMB in 2023, 0.27 RMB in 2024, 0.43 RMB in 2025, 0.49 RMB in 2026, and 0.56 RMB in 2027 [3]. Financial Ratios - The report indicates a projected return on equity (ROE) of 5.1% in 2023, decreasing to 4.3% in 2024, and then increasing to 8.6% by 2027 [3]. - The price-to-earnings (P/E) ratio is projected to be 15.59 in 2023, increasing to 19.16 in 2024, and then decreasing to 9.41 by 2027 [3].